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Atmus Filtration Technologies Inc. (ATMU)

Company Dividend Discount ModelIndustry: Industrial - Pollution & Treatment ControlsSector: Industrials

Valuation Snapshot

Stable Growth$16.96 - $24.41$20.59
Multi-Stage$26.68 - $29.35$27.99
Blended Fair Value$24.29
Current Price$45.09
Upside-46.13%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019
DPS0.00%0.00%0.100.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.27%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)199.50
(-) Cash Dividends Paid (M)16.80
(=) Cash Retained (M)182.70
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)39.9024.9414.96
Cash Retained (M)182.70182.70182.70
(-) Cash Required (M)-39.90-24.94-14.96
(=) Excess Retained (M)142.80157.76167.74
(/) Shares Outstanding (M)83.1083.1083.10
(=) Excess Retained per Share1.721.902.02
LTM Dividend per Share0.200.200.20
(+) Excess Retained per Share1.721.902.02
(=) Adjusted Dividend1.922.102.22
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$16.96$20.59$24.41
Upside / Downside-62.39%-54.33%-45.87%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)199.50197.51195.53193.57191.64189.72195.41
Payout Ratio8.42%24.74%41.05%57.37%73.68%90.00%92.50%
Projected Dividends (M)16.8048.8680.27111.05141.21170.75180.76

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)44.3344.7845.23
Year 2 PV (M)66.0867.4468.81
Year 3 PV (M)82.9685.5288.14
Year 4 PV (M)95.7199.68103.76
Year 5 PV (M)105.01110.48116.17
PV of Terminal Value (M)1,822.981,917.902,016.74
Equity Value (M)2,217.072,325.802,438.86
Shares Outstanding (M)83.1083.1083.10
Fair Value$26.68$27.99$29.35
Upside / Downside-40.83%-37.93%-34.91%

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